US rice available for RP but supplies tight

The strong demand for rice overseas as well as its tight availability makes it also difficult for suppliers to meet the rice demands of the Philippines, the USA Rice Federation said.

Jim Guinn, vice president for international promotion of USA Rice, said the situation is not likely to improve until late July or August when the new harvest season starts.

But Guinn gave assurance that the USA Rice Federation, an organization of rice producers, millers and merchants, can meet the rice demands of the Philippines.

“We will certainly try to do everything we can to help the Philippines,” Guinn said.US rice exports this year have soared by more than 20 percent over that of last year, helped by strong overseas demand for the staple. Guinn said the group is prepared to support more credit guarantees for the Philippines from the USDA’s GSM program.

The program promotes sales of US farm goods to developing countries by assuring lenders they will get paid even if a borrower defaults payment.

The Philippines used $75 million in GSM credit guarantees this year to buy US rice but funds cannot be made available under the program since the US farm law is set to expire. Analysts here noted the increase of demand for rice from Manila.

“The balance of supply and demand is so finely tuned in the Philippines that all you need is a bad typhoon in the coming months to tip the country over the edge,” said an analyst with knowledge of the rice situation in the Philippines.

“The new harvest season in the Philippines begins in September and if we can get there without suffering any devastating typhoon hits then we’ll be okay,” he said.

US rice exporters believe there may be an easing of the worldwide shortage of rice by the end of the year, but until then, prices are expected to increase further.

Analysts said the weakness of the dollar has somewhat offset long-distance shipping costs but pointed out that some countries like India, for instance, which is closer to the Philippines, charges $1,000 per metric ton of Basmati rice, which is more costly than US rice. — Philippine Star News Service